Trauma - Case Study
Background
Craig is a Director and Shareholder with three others of a medium sized graphic production company.
The Event
Craig at age 58 suffered a heart attack in November 2003 and was hospitalised.
The Process
Mainstay was notified and started the claim process with approval gained within three weeks. The claim involved Disability
Income plus Key Person cover and also Shareholder Succession cover.
Craig’s disability income covered his time in hospital and his recuperation time until he elected to return to work. There was then also a partial disability payment made while he gained his strength and built up to the stage of being able to resume his full duties.
The Key Person Trauma cover was paid directly to the company and provided funding for Locum expenses and some substantial additional costs incurred as a result of Craig’s unplanned absence.
The Shareholder Succession Trauma cover was paid to the Succession Trustee who under the terms of the Agreement paid an initial sum to Craig with the remainder being held in trust for a period of time as he had elected to return to work.
Within the agreed election time Craig was deemed to be operating at an acceptable level according to the other shareholders. The remainder of the funds held by the trustee were then distributed as directed in the agreement.
The agreement remains in place for any subsequent claims.
The total payout was $443,555 and as the company has been in a rapid growth phase the funds were applied within the business which has maintained its momentum when the alternative would have been a more serious setback for Craig and his company.
